Term
Nominal vs. real
Nominal is the number written on the paycheck or the account; real is what that number buys once you subtract inflation.
In pesos: A 4% raise with 5% inflation is a nominal raise and a real pay cut of about 1%.
Where to go deeper
3/4 5 min Read What inflation is, and how it hits you Why the same money buys less over time, how a raise can still be a pay cut, and what central banks are actually doing when they raise rates.More terms on the same topic
Educational content only: not financial, investment or tax advice. The numbers are examples to understand the idea, not a forecast or a recommendation.